All Forum Posts by: Jeff Trevarthen

What kind of loan do you have? FHA or Conventional? FHA no longer gets rid of the PMI at a certain LTV. You actually have to refinance out of the loan to get rid of it.

On a smaller loan, a fluctuating interest rate isn't going to do much to change the payment very much. If you can find the note along with terms of the ARM loan as far as adjustments are concerned, you should be able to calculate what the adjustments may look like. I can help you out if need be, but we're still in early 2015 so it's hard to predict where the LIBOR will be then! :) At that LTV for a rental, you'd be hard pressed to find anyone to do just a straight refinance. I don't know of anyone.

Here's a solution. You could refinance the ranch and take cash out, then refinance the rental and pay down the mortgage to an acceptable LTV. All of this assuming you can qualify with your income and such.

You'd also have to take the property out of the trust temporarily to make the refinance loan happen (not sure if you knew that or not). 

Hope that helps.

Jeff

In my opinion, refinance to get the lowest payment possible and rent.  

I would also make the tenants pay for the gardener and pool guy just like they should be paying for all of the other expenses as well (with the exception of mortgage, taxes, and insurance of course). 

After a year of renting, consider a 1031 exchange to sell and buy something that produces more cash flow so as to avoid capital gains.

Hi John,

I may be little far but I'm a mortgage broker/owner up in San Jose in the bay area. If you need any help or have questions that you need answered,  I'm always happy to help.

Jeff

Hi Jonathan,

Are you looking to make offers on listed property?  If so, then I may have someone for you.

Let me know.

Jeff

Hi @Sivesh Selvakumar 

Welcome to the community.  There's a ton of great information about real estate on the blog as well as in the forums. If you need a lender to work with, I'm a mortgage broker and specialize in investment properties.  I've written several articles for the BP blog about financing real estate so please check them out.

In the end, good luck and happy investing.

Jeff

Hi @rizalene,

Welcome to BP! I'm down in San Jose and if you need any help with financing, let me know. I'm one of the bloggers on the BP blog so make sure to check out some of the articles I've written about financing, loan applications, documentation, etc.

All the best,

Jeff

For a residential single family income property you're looking at 20% down, but as @John Matthews stated, the exception is if you are going to live in one of the units for a multifamily property.  

@Carlos O. I agree with @Wayne Brooks .   I write these often, and I never write the interest rate in the letter.  The interest rate is just the rate used to qualify.  Interest rates fluctuate too much to try to estimate what it will be once you finally get under contract.   

What kind of problems @Melissa Hasan ?